GST on milling of wheat into flour or paddy into rice for distribution by State Governments under PDS

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....MMERCIAL TAXES CIRCULAR No. GST-06/2021 Sub : GST on milling of wheat into flour or paddy into rice for distribution by State Governments under PDS- reg. Certain representations have been received seeking clarification whether composite supply of service by way of milling of wheat into wheat flour, alongwith fortification, by any person to a State Government for distribution of such wheat flour ....

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.... a Panchayat under article 243G of the Constitution or in relation to any function entrusted to a Municipality under article 243W of the Constitution". As per the recommendation of the GST Council the issue is clarified as below. 3.1 Public Distribution specifically figures at entry 28 of the 11th Schedule to the constitution, which lists the activities that may be entrusted to a Panchayat under....

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....ble GST rate would be 5% if such composite supply is provided to a registered person, being a job work service (entry No. 26 of Notification (11/2017) No FD 48 CSL 2017(Tax Rate) dated: 29.06.2017). Combined reading of the definition of job-work [section 2(68), 2(94), 22, 24, 25 and section 51] makes it clear that a person registered only for the purpose of deduction of tax under section 51 of the....